Hong Kong is in talks with several Chinese electric-vehicle makers to establish local EV manufacturing, according to people familiar with the matter, as the financial hub looks to advanced industries to diversify its ailing economy.

The city’s officials aim to develop an EV assembly base — a relatively complex process requiring advanced skills, the people said, asking not to be identified discussing private deliberations. They are weighing potential sites in Hong Kong’s New Territories that border the Chinese mainland, they added.

The talks have included state-owned automaker FAW Group, one of the people said.

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Hong Kong has “been proactively facilitating the development of strategic industries, including advanced manufacturing” as part of its 2022 I&T development blueprint, the city’s Innovation, Technology and Industry Bureau said in response to a Bloomberg News query.

FAW didn’t immediately respond to a request for comment.

Hong Kong is turning to new industries to spur growth after years of economic challenges fueled by political crackdowns, Covid isolation and a property slump, which have undermined the city’s status as a premier financial hub.

Companies across China’s EV supply chain — from battery makers to parts suppliers — have been setting up shop in Hong Kong to leverage its financial system for their global expansion. The world’s largest battery maker, Contemporary Amperex Technology Co Ltd, opened its international headquarters in the city and launched its debut in the local stock exchange in May in the world’s biggest listing this year.

Other firms that have invested billions of dollars building bases in Hong Kong include autonomous driving outfits Black Sesame Technologies and Beijing Horizon Robotics Technology R&D Co.